said its second-quarter profit rose only slightly as weak demand took a toll on sales, but the results, excluding items, matched analysts' estimates.
The toymaker earned $20.9 million, or 5 cents a share, in the quarter compared with $19.6 million, or 4 cents a share, a year ago. Excluding charges, the company earned $30.9 million, or 7 cents a share, compared with $29.6 million, or 7 cents a share, in the prior-year quarter. Mattel said operating income was down 6% at $54.8 million.
Total sales fell 4% to $769 million. Domestic gross sales declined 15%, but international sales rose 11%. In local currencies, however, they were up less than 1%.
The company's Mattel Brands business unit saw worldwide gross sales fall 9% to $494.7 million, with the Barbie brand down 8% and Hot Wheels, Matchbox and Tyco R/C brands posting a total decrease of 20%.
"As expected, second-quarter sales were weak driven by the combination of declining retail inventories and market-share losses," said Robert A. Eckert, chief executive. "To reinvigorate sales in the all-important second half, we are bolstering our marketing and promotional programs surrounding our core brands, as well as introducing exciting new brands."
Shares of Mattel were down 13 cents to $19.72 on the
New York Stock Exchange